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Expansion of business to new countries: JC Decaux (2006)

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  1. Introduction.
  2. Polish environment.
  3. Trompenaars analysis and business culture.
  4. Negotiation and communication.
  5. Hofstede's cultural dimension.
  6. Conclusion.
  7. Bibliography.

Expanding to new countries is nowadays an important stake for companies, considering the cost benefit they can get from this. Economies of scales, of scope permit them to drive their cost down and thus to be more and more competitive on the global market. But this world expansion in a context of general globalisation requires a precise knowledge about the host country, above all on its culture and habits. An objective knowledge of a country's culture is an essential point to assure success for our company in culturally different countries. For Geert Hofstede, who is the international reference in matter of Cross Cultural Management, culture is ?the collective programming of the mind that distinguishes the members of one group or category of people from another? (Hofstede, 2001, Page 9). The definition of Wikipedia confirms: Culture is ?the way people live in accordance to beliefs, language, history, or the way they dress?.

[...] Trompenaars' analysis and business culture The home country, France, and the studied host country, Poland, of JCDecaux thus have different values, due to their different cultures, which necessarily imply different ways of acting in the business world. They have different approaches for negotiating and communicating, and the objective of the company is to make them converge the more possible. Both France and Poland have the common point to be seen as particularist cultures by Trompenaars' analysis; situations are lived as personal, individual and unique there. [...]


[...] In these cultures, females are treated equally to males in all aspects of the society. Uncertainty Avoidance Index (UAI) focuses on the level of tolerance for uncertainty and ambiguity within the society - i.e. unstructured situations. A High Uncertainty Avoidance ranking indicates the country has a low tolerance for uncertainty and ambiguity. This creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty. A Low Uncertainty Avoidance ranking indicates the country has less concern about ambiguity and uncertainty and has more tolerance for a variety of opinions. [...]


[...] Furthermore, Polish people are very friendly, they like entertaining during a meeting, which is one of the reasons why they meander during business talks as well. They may even invite their interlocutors' home, which is clearly not frequent in France. French are very attached to their French language, and it is important for them to express regret if someone can not speak French. The problem for JCDecaux's managers is that English is the official business language, which Polish handle quite well, contrary to the common idea which is that French are not very at ease with it. [...]

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